Wema Bank Plc has officially launched a N150 billion rights issue, set to commence on April 14, 2025, as part of its strategic recapitalization efforts. This move aligns with the Central Bank of Nigeria’s (CBN) directive for increased capital buffers in the banking sector. The rights issue involves offering 14,286,785,417 ordinary shares at N10.45 each, on the basis of two new shares for every three existing shares held by shareholders registered as of March 5, 2025.
This capital raise is a key component of Wema Bank’s broader plan to secure N200 billion through a combination of rights issuance and private placement. The goal is to reinforce the bank’s financial stability and position it as a Systemically Important Bank (SIB) within Nigeria’s financial system. The bank aims to enhance its lending capacity, particularly to small and medium-sized enterprises (SMEs), as well as retail, commercial, and corporate customers.
A portion of the proceeds will also be used to improve the bank’s digital infrastructure, focusing on its flagship platform, ALAT. Launched in 2017, ALAT has been instrumental in Wema Bank’s digital transformation, expanding its reach among Nigeria’s digitally active population.
The timing of this capital raise is strategic, as Nigerian banks prepare to meet higher capital requirements amid economic challenges and regulatory expectations. Greenwich Merchant Bank Limited, GTI Capital Limited, Qualinvest Capital Limited, and Raddix Capital are managing the rights issue, ensuring transparency and professionalism in its execution.
Wema Bank’s recent financial performance has been robust, with a profit before tax of N102.51 billion in FY 2024, marking a 135% increase from the previous year. This strong financial position underscores the bank’s commitment to long-term value creation for its shareholders and stakeholders.
